Shree Pushkar Chemicals & Fertilisers Limited (SPCFL) has taken a significant step to strengthen its position in the dyes market by incorporating a new wholly-owned subsidiary, Dyecol Color Technologies Private Limited (DCTPL). This strategic move aims to drive growth in the company's dyes and dyes intermediates business sector.

New Subsidiary Details

DCTPL was officially incorporated on September 3, 2025, in Mumbai, Maharashtra, as confirmed by the Certificate of Incorporation received from the Ministry of Corporate Affairs. The new entity is set to serve as the dedicated marketing arm for SPCFL's dyes and dyes intermediates business.

Strategic Objectives

The establishment of DCTPL aligns with Shree Pushkar Chemicals' growth strategy in the dyes sector. By creating a specialized unit, the company aims to:

1. Enhance its market presence in the dyes and dyes intermediates segment
2. Streamline marketing efforts for these specific product lines
3. Potentially improve operational efficiency and focus in the dyes business

Financial Investment

SPCFL has made an initial investment of Rs. 1,00,000 in DCTPL, subscribing to 10,000 equity shares at a face value of Rs. 10.00 per share. As a wholly-owned subsidiary, SPCFL will hold 100% of DCTPL's share capital.

Industry Impact

The creation of Dyecol Color Technologies demonstrates Shree Pushkar Chemicals' commitment to expanding its footprint in the dyes industry. This move could potentially lead to:

• Increased market share in the dyes and dyes intermediates sector
• More focused marketing and sales strategies for these products
• Enhanced competitiveness in the specialty chemicals market

Company Background

Shree Pushkar Chemicals & Fertilisers Limited is recognized as a Government of India Export House and is ISO 9001:2015 & 14001:2015 certified. The company's diverse product portfolio includes:

• Specialty textile dyes
• Dyes intermediates
• Acids
• Power generation
• Animal health and nutrition products
• Fertilisers

The incorporation of Dyecol Color Technologies Private Limited marks a noteworthy development in SPCFL's growth trajectory, particularly in its dyes business segment.

Shree Pushkar Chemicals & Fertilizers Limited , a leading manufacturer of specialty chemicals and fertilizers, has reported robust financial results for the first quarter, demonstrating strong growth across its business segments.

Financial Highlights

• Revenue from operations reached Rs. 254.50 crores, marking a 31.1% year-on-year growth and a 16% sequential increase.
• EBITDA expanded to Rs. 29.10 crores, showing a 64% year-on-year growth, with margins improving to 11.4% from 9.1% in the previous year.
• Profit after tax increased by 63.2% to Rs. 21.00 crores, with PAT margin rising to 8.2%.

Segment Performance

The company's performance was primarily driven by the fertilizer segment, which benefited from strong demand in the agriculture sector:

• Fertilizer segment revenue grew by 33.4% year-on-year and 46.8% quarter-on-quarter.
• Fertilizer volume growth was 9.4% year-on-year and 27.1% quarter-on-quarter.

The chemical segment faced some pressure but showed signs of recovery:

• Chemical segment revenue increased by 28.4% year-on-year, despite a 6.9% decline in volume.
• A significant recovery of 48% was observed in chemical volumes on a sequential basis.

Strategic Developments

Shree Pushkar Chemicals announced several strategic initiatives during the quarter:

1. Incorporation of a wholly-owned subsidiary, Dyecol Color Technologies Pvt. Ltd., to act as a marketing arm for the company's dyes and dyes intermediates business.
2. Ongoing expansion of Unit-5, with commercial production expected to commence within 1-2 months, pending electricity load enhancement.
3. Progress on Unit-6 expansion, with trials planned for December 2025.
4. Focus on sustainability with plans to scale up solar capacity, including a 10 MW DC solar project in Nanded and an additional 1.1 MW DC solar plant at the Kisan Phosphates Pvt. Ltd. facility in Haryana.

Management Commentary

Punit Makharia, Chairman & Managing Director, commented on the results: "We are pleased to report that Shree Pushkar Chemicals had a strong start for the year in Q1. The Company delivered strong performance across both chemical as well as fertilizer segments. Our continued focus on cost optimization and improved realization has helped to mitigate challenges and maintain strong financial results."

Outlook

The management expressed confidence in the company's growth trajectory, citing:

• Strong demand for fertilizers, supported by favorable government policies and initiatives.
• Potential for improved performance in the chemical segment, particularly in overseas markets.
• Expectations of additional business from Unit-5 expansion in the current fiscal year.
• Projected revenue growth of Rs. 500-700 crores in FY27, driven by the full operationalization of Unit-5 and Unit-6 expansions.

With a strong liquidity position of Rs. 112.00 crores in non-lien deposits and ongoing capacity expansions, Shree Pushkar Chemicals & Fertilizers Limited appears well-positioned for sustained growth in the coming quarters.

The company maintains a cautious outlook, with management projecting a topline of Rs. 950-1,000 crores for FY26 and anticipating PAT margins in the range of 8.5-9%.